Educational Institutions are Tax Free but not Regulatory Fees Free

Clinics, Law Offices need to secure business permits too.

Baliwag, Bulacan – Municipal Administrator Enrique Tagle reminded educational insitutions to be the best role models especially in paying dues to the government. During the annual dialogue with school heads which was aired via facebook live, a netizen asked if educational institutions are tax free and if that so, what is it that educational institutions must pay government, MA Tagle responded: “While the constitution provides academic institutions some exemptions from taxes like real property taxes, Educational Institutions must still register for business permits and pay the regulatory fees.”

Regulatory Fees

Regulatory Fees are those charges imposed by a government agency or local government units used to cover for its surveillance activities, administrative and other forms of services rendered for public order and public safety. Local government units impose regulation on sanitation and food safety practices, waste management, zoning, building and fire safety.

“Unfortunately, performing surveillance, employing personnel and other duties have costs which must be covered by the fees collected in the form of regulatory fees,” Tagle explained. He further propounded that the national government issued a circular limiting the local government from spending special funds such as economic and local development funds for the purpose of paying operating expenses related to garbage hauling.

Bureau of Local Government Finance

The Bureau of Local Government Finance and The Department of Interior and Local Government recently clarified issued related to the application of business permits.

While, professionals are not to be collected any local taxes, the local government imposes fees on regulatory and other services rendered. These are to be collected from clinics and offices. The same goes to institutions.